What to expect from Indian stock market in trade on August 20

By Admin

20 Aug, 2025

The Indian stock market is poised for a cautious start on Wednesday, August 20, as global cues remain weak and early indicators point toward a negative opening. The Gift Nifty was trading around 24,965, nearly 68 points lower than Nifty futures’ previous close, signaling a subdued beginning for benchmark indices.

On Tuesday, however, the domestic equity market extended its winning streak for the fourth straight session. The Sensex gained 370.64 points (0.46%) to close at 81,644.39, while the Nifty 50 rose 103.70 points (0.42%) to settle at 24,980.65.

Here’s a detailed look at what to expect from Sensex, Nifty 50, and Bank Nifty today:

Sensex Outlook

The Sensex formed a bullish candle on the daily charts, hinting at further upside potential. According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, as long as Sensex trades above 81,300, the uptrend could extend towards 82,000 – 82,300. However, if it slips below 81,300, the trend may turn vulnerable, prompting traders to exit long positions.

Nifty 50 Outlook

The Nifty 50 also displayed a bullish candlestick pattern, staying above key moving averages (20-day and 50-day EMA). Analysts expect a positive bias with crucial support around 24,850 – 24,880, while resistance levels lie near 25,150 – 25,300.

• Options Data: The highest Call open interest is at 25,000 and 25,500, acting as strong resistance, while the highest Put open interest at 24,900 and 24,800 highlights solid support.
  
  

• Nagaraj Shetti of HDFC Securities sees the upside gap formed earlier this week as a bullish breakaway gap, suggesting a potential near-term rally toward 25,300.
  
  

• Sudeep Shah from SBI Securities notes that the RSI trend remains positive, supporting continued momentum.
  
  

Overall, the structure indicates a buy-on-dips strategy, with dips likely to attract renewed buying interest.

Bank Nifty Outlook

The Bank Nifty closed at 55,865.15 on Tuesday, posting a modest gain of 130.25 points (0.23%) and forming a bullish candle.

• Technical Indicators: The index is back above its 9 EMA and 20 EMA but still capped below the 50 SMA, indicating tentative improvement.
  
  

• Om Mehra of SAMCO Securities suggests support lies at 55,600 – 55,500, while resistance is seen around 56,100 – 56,150. A close above 56,150 would signal stronger upward momentum.
  
  

• Bajaj Broking Research expects the index to remain in a consolidation range of 54,800 – 56,300, with any breakout beyond this zone defining the next directional move.
  
  

Key Takeaways

• Sensex: Bullish bias above 81,300; possible target 82,000 – 82,300.
  
  

• Nifty 50: Support at 24,850; resistance at 25,150 – 25,300; buy-on-dips strategy favored.
  
  

• Bank Nifty: Consolidation likely; support at 55,500 and resistance at 56,150.
  
  

Conclusion

The Indian equity markets may open lower today, dragged by weak global signals, but the overall technical setup remains positive. As long as benchmarks hold above key support levels, analysts expect the uptrend to extend further. Traders are advised to stay cautiously bullish, accumulate on dips, and maintain stop-losses to manage volatility.

Disclaimer: The views and predictions in this article are based on market analysts’ opinions and brokerage reports. Investors should consult certified financial advisors before making investment decisions.